Insurers’ claim pay-outs dropped to K116m in 2018 – PIA

The Pensions and Insurance Authority (PIA) says there was a decline in the total amount paid by general insurers in claims and benefits to K116 million by end of the third quarter of 2018, down from K131 million in the prior corresponding period.

In a statement, PIA communications manager Doreen Silungwe stated that general insurers paid a total of K116 million in claims and benefits by September 30, 2018, compared to K131 million paid out in 2017 during the same period.

“General insurers paid a total of K116 million in claims by September 30, 2018, compared to K131 million that was paid out in 2017 during the same period,” Silungwe stated.

She, however, added that the industry continued to register steady growth with a total of 342 players licensed by the Authority by September 30 last year.

“On the insurance side, the industry also continued to register a steady growth. The industry had a total of 342 players licensed by the Authority as at September 30, 2018. The Gross Written Premium (GWP) for the industry as at September 30, 2018 was K739.36 million compared to K696.09 million recorded in 2017 during the same period,” Silungwe added.

“For 2019 outlook, the Authority is optimistic that the industry will continue to register steady growth. However, the Authority is concerned with the continued complaints arising in the insurance industry relating to claims management.”

And in terms of long-term insurance market share, Sanlam had the largest share in terms of GWP with 24 per cent, followed by ZSIC Life with 16 per cent, SES with 15 per cent, Madison Life and Prudential Life with 14 per cent each, with Liberty Life and Barclays Life sharing 6 per cent each, according to PIA data.

As at September 30, 2018, pensions net assets stood at K7.02 billion compared to K6.43 billion of the same period in 2017, according to the statement.